Special Climate Change Fund

Summary

The Special Climate Change Fund (SCCF) was created in 2001 to address the specific needs of developing countries under the UNFCCC. It covers the incremental costs of interventions to address climate change relative to a development baseline.

Adaptation to climate change is the top priority of the SCCF, although it can also support technology transfer and its associated capacity building activities. The SCCF is intended to catalyse and leverage additional finance from bilateral and multilateral sources, and is administered by the Global Environment Facility.

Details on our Data

Information on projects as of May 2017. Updated information is available for approved amounts, however, data on disbursement amounts are not publicly available.

Basic Description

Unspecified

Administrating Organisation

Global Environment Facility (GEF) with World Bank as Trustee.

Objectives

To support adaptation and technology transfer projects. Programmes are to be country-driven, cost-effective and integrated into national sustainable development and poverty-reduction strategies; and also take into account national communications or NAPAs and other relevant studies.

Activities Supported

The SCCF has two active windows (1) Adaptation and (2) Transfer of technologiesIts governing instrument also allows it to support (3) projects on energy, transport, industry, agriculture, forestry, and waste management; and (4) activities to assist developing countries whose economies are highly dependent on income generated from the production, processing, and export or on consumption of fossil fuels and associated energy-intensive products in diversifying their economies.

Conditions and Eligibility Requirements

All Non-Annex 1 countries are eligible to apply, although the needs of the most vulnerable countries in Africa, Asia, and the Small Island Developing States (SIDS) are to be prioritised. The project size can be small, medium or large, but must focus on the ‘additional costs’ imposed by climate change on the development baseline. Funding is only provided to address impacts of climate change in addition to basic development needs in vulnerable socio-economic sectors. However, projects do not need to generate global environmental benefits as long as additionality can be demonstrated.

Fund Governance

Decision-Making Structure

The SCCF is governed by the LDCF/SCCF board which has primary responsibility for developing, adopting, and evaluating SCCF policies and programs. It is comprised 14 members from donor constituencies and 18 from recipient constituencies (a total of 32 members) and makes decisions by consensus. The SCCF uses the operating procedures of the GEF, including its implementing agencies.

Because the requests for SCCF exceed capitalisation, pre-selection criteria have been agreed:

Project or Program Quality

Balanced distribution of funds in the eligible countries, with an emphasis on vulnerable non Annex I countries who have not previously had access

Equitable regional distribution

Balanced support for all priority sectors

Balanced distribution among GEF agencies based on comparative advantage.

Finance is available for project preparation. Full Size projects must be cleared by the CEO of the GEF before they are formally approved by the Council at which point funding is earmarked for their support. Projects are only considered to be approved after a Project Identification Form that shows that the project meets certain criteria has been produced and then approved by the council. It then needs to be endorsed by the CEO before funding can be said to have been approved (although nearly 100 % of council approved projects are also endorsed by the CEO). Implementing agencies then also have to approve projects through their internal decision making processes.

Non-Government Stakeholder Participation

Stakeholder engagement and gender considerations in the development of projects is recognised as important and contribution to the quality of programmes. The GEF NGO Council can also engage on the SCCF.

Information Disclosure

The Financial Status Report contains the information on the progress of donor contributions.

Disbursements are also reported in bi-annual “Status Report On The Least Developed Countries Fund And The Special Climate Change Fund”

Issues Raised

An Evaluation of the SCCF was completed in October 2011 which noted the limited capitalisation of the SCCF despite the relatively high relevance of supported projects and innovative approaches that some programmes have taken. The need to strengthen learning and give SCCF projects an identity distinct from the GEF trust fund was also noted. In addition the pre-selection process has also been criticised as non-transparent. The need to deepen stakeholder engagement and gender sensitivity in the development of national communications and national adaptation programmes that inform the development of SCCF projects has been noted.

Relationship with Official Development Assistance

Inclusion as Official Development Assistance

Yes.

Financial Instrument/ Delivery Mechanism Used (e.g. grant, loan)

Grants.

Nature of Recipient Country Involvement

Projects are intended to be nationally owned.

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